A report from Global Times, a tabloid run by China’s the ruling Communist Party's official People's Daily, claimed that China and the United States are 'very close' to a agreeing on a phase one trade deal. The report effectively dispelled a host of "negative" media reports that raised questions about the possibility of a trade deal.

The state-backed Global Times said on its Twitter feed quoting sources that were reportedly close to the Chinese government that there is conviction and commitment among leaders in Beijing to continue negotiations with Washington for the phase two or even a phase three of the trade deal between the two largest economies of the world.

;last week there were multiple reports emanating from the US which claimed, citing sources, trade experts and people close to the White House, that the possibility of the so called phase one trade agreement between China and the United States, which was expected to be signed by the heads of state of the two countries in November, can only be done next year. Reports claimed that China has been demanding wider roll back of import tariffs while the US was stuck with its own demand from China such as written pledge on the quantity of purchase of US agriculture products.

The chances of the ‘phase two’ of the trade agreement is less likely because both the countries are currently struggling to come to an agreement for the phase one deal itself, said US and Beijing officials as well as lawmakers and trade experts according to reports.

Reports also stated last week that the possibilities of a phase one deal on trade between the US and China were threatened further after the Us Congress passed a legislation that seeks to lend support to the pro democracy protesters in Hong Kong and China had reportedly not taken that step very kindly. However, there were no major disruptions as the district council elections in the Chinese controlled territory got completed on Sunday which could help improve the situation in Hong Kong.

An initial trade deal with China was still possible by the end of the year, US National Security Adviser Robert O'Brien said on Saturday. He however also warned that the US will not be completely oblivious of the developments in Hong Kong. He also said that it would be "a good sign" if the elections took place without violence.